Many Peaks Minerals (ASX:MPK) is looking to acquire up to 100% of the Baga Gold Project within the Birimian greenstone belts of West Africa, continuing with its 24-month option with exclusive rights as well as a 12-month option fee to maintain it.
The company has adjusted its option agreement with Atlantic Resources, decreasing Many Peak’s option fee to issue 500,000 shares to 400,000 shares settled in a 12-month voluntary escrow, with an additional cash payment of US$100,000 ($151,908.46).
The company will then be able to exercise the option by issuing 1.5 million shares with a cash payment of US$1 million to vendors, which can be substituted to issue shares with an aggregate value of the cash payment, determined by the 20 consecutive trading days prior to exercise.
After declaring a JORC-compliant resource estimate of the project, Many Peaks will pay a deferred consideration of US$1.25 per additional resource ounce that exceeds the previous estimate.
This will continue until a minimum of 3,000 ounces of gold is produced in the span of a quarter, signalling the completion of commercial production and ending the company’s obligation to pay deferred consideration.
Managing Director Travis Schwertfeger says maintaining this option over the project will allow the company to align itself with its strategic focus on gold exploration in Côte d’Ivoire.
“Early work is progressing across the vast land holding and this payment allows us to continue building our geological understanding ahead of more advanced exploration efforts,” Schwertfeger says.
Many Peaks has completed initial fieldwork at the project, discovering structural and geological features that will be followed up in future investigation.
The company is currently awaiting the return of surface soil geochemistry surveys from the Baga Gold Project.
Many Peaks Minerals is a gold and copper explorer, focused on advancing its portfolio of prospects in Côte d’Ivoire in West Africa.
Write to Maddison Elliott at Mining.com.au
Images: Many Peak Minerals
